PROVIDENCE – Sen. William A. Walaska and Sen. David E. Bates announced plans last week to introduce a bill for the 2013 legislative session that calls for easing the business corporation tax on small companies and startups.
According to a statement, under the state’s existing tax structure, Rhode Island businesses face a minimum $500 per year corporations franchise tax payment.
The planned legislation will allow businesses to reduce that minimum tax by $100 per employee for up to four employees, effectively cutting the minimum tax to $100, the statement said.
In addition, the legislation would give startups a three-year grace period before the corporation tax is imposed.
“This legislation is going to be a help to small and new businesses in Rhode Island, the kinds of companies that employ so many of our residents, the kinds of companies we want to attract to our state,” said Walaska. “A $500 minimum tax is a significant amount to many of these firms.” •